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Closing Bell With Maria Bartiromo

News/Business. Maria Bartiromo. Analysis of the day's winners and losers in the stock market. New.

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01:00:00

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TOPIC FREQUENCY

Us 17, S&p 9, Citibank 4, John Paulson 4, America 3, Sheryl 3, Europe 3, Schwab 3, John 3, U.s. 3, Cisco 3, Ibm 3, Siemens 2, Ameritrade 2, Public 2, Doug 2, Sheryl Sandberg 2, Joe 2, Bob Iger 2, Microsoft And Intel 2,
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  CNBC    Closing Bell With Maria Bartiromo    News/Business. Maria Bartiromo. Analysis of the  
   day's winners and losers in the stock market. New.  

    March 11, 2013
    4:00 - 4:59pm EDT  

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s&p getting ever closer, even the skeptic we just had on, peter sorrentino, is looking for 15.77 on the s&p before he sees a correction. that would take us well into all-time high territory. we are 10 points away from it right now. we need to get to 15.65 for that to happen, we're almost there. one story, apple, late in the day this popped, still trying to figure out why. rumors out there, nothing substantial or substantiated at this point. here we are up 1.44%. to peter costa, you've been writing this up. >> i'm still riding this up. >> do you have an objective before you get nervous? >> my nervous point is 5% above the all-time high. i think we still are probably 600 points on the dow. so, you know, i think around 15,000, somewhere in that neighborhood, i think that's where i'll start lightening up a little bit. i don't know if we're going to get there. we might be running out of steam here.
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>> you're starting to get a litigate cautious here? >> a little cautious. i'm not seeing the steam i saw two weeks ago. there's some indications it's not as strong right now. >> we have pointed out, all the attention's gone to the dow, the s&p is what traders keep an eye on. it's getting closer to that all-time high of 15.65. could that be a resistance level as they like to say for traders? >> i would think so. i think a lot of people will be ol sell side at that level. there's nothing in the horizon i see to force it to go much higher than that. but there's always something that could pop. right now that's probably where we want to go. >> i'll let you go, get a 32-ounce slurpee, it will be legal even tomorrow. a judge just canceled all of that, invalidated all that. >> oh! i can go to the movie theater and get what i want. >> happy peter costa. we'll see you tomorrow. the dow strengthening into the close, a game of 50 points all of a sudden, and the s&p
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about 9 points away from its all-time high. that's it for the first hour of "the closing bell." stay tuned, dick coming up on the second hour with maria bartiromo, i'll see you tomorrow.
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divine capital. good to have you on the program, everybody. thank you so much for joining us. danny, the market won't quit. >> we found the right formula, so no stopping us. and i think we'll probably be able to see that going forward just a little bit more. those people starting to come into the market as we saw in your segment, people looking at their statements and starting to get excitement again. the stock market is doing something wonderful. and don't forget, the market is actually much healthier than it was last time we hit the marks. >> valuations are certainly lower than the last time we were in this record territory. >> that's right. >> and certainly the tech bubble. so that's certainly a positive. let's talk about how you want to allocate money, doug. from ing, what are you doing? doug's not -- we'll get to doug in a moment. jeff, russell 2,000 in-ddex an
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even better performer. how do you see it? >> markets have really run here. i would say we're pulling in our horns a little bit. we're concerned about how quickly the market is running. 10% in three months. that's a phenomenal return. and 125% from the lows of 2009. so i think we're a little bit concerned about profit growth. profit margins are very high. and we still have headwinds that i think will come to the forefront again. people are fatigued by europe, but i think it will continue to be an issue for us. >> doug, are you with us from ing? >> yes, i am. >> what's your take on this market so market? would you put new money to work? >> i would but more in a defensive manner. i'd be diversified, but i wouldn't forget about bonds. this proves don't fight the fed, but it's not supported by fundamentals. so fundamentals have flat lined. growth in europe is negative. recession in japan.
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0% growth in the united states. where are the fundamentals. i don't see it. >> the corporate sector is probably the healthiest that it's been in years with $3.6 trillion of cash on balance sheets. earnings not bad. housing market has turned. what fundamentals are you looking at? >> what i'm looking for is the growth. markets did don't buy level. they buy growth. and when i saw in the third quarter corporate earnings went negative, right now we're at 3% which is good, but consensus for the first quarter is negative. how can you have negative year over year profit growth and call it strong fundamentals? that's my concern. >> that's a great point actually because we're not seeing growth in the numbers when you look at growth are very light. does that concern anybody else on this panel? >> as bond cio, i'm concerned with that, too, median household income not increasing, as well.
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i believe to blhe market is tal up by the fed. we don't have to sell assets and we will continue bond buying until we think that we need to stop. a lot of that job owning has helped pump up markets and i think that's why we're a little bit more cautiously positioned on both the equity side and bond side right now. >> so jeff, would you sell then into any rally, do you want to start selling stocks? >> in our multiasset portfolios, absolutely. we have at the margin sold some positions and we've also reallocated our bond portfolio. taken high yield exposure from 12% to below 5%. and nonagency mortgage exposure down from 15% down to 9%. so we've taken our exposures down and like i said, rein in our horns a bit because we do think there are risks and the market has gotten a little bit ahead of itself. >> there are huge risks.
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there will continue to be huge risks. but what you can't do is not not participate in the market like this. so i think that you have to have an eye toward liquidity, you have to be will in issues that you can actually get in and out on of in a nimble manner. but the productivity gains we've had have absolutely tremendous. we wouldn't be surprised if we slowed down a little bit first and second quarter of this year, but we do think that we're in such a position over the next year and a half to see additional gains from u.s. and global corporations. >> brian, jump in here. your firm has $1.2 trillion in retail client assets. third largest full service prior of retailer is visits in the country. are you seeing retail investor participate in this? >> actually, we actually are starting to see a little bit more in the way of participation p but i think the key thing here as you you look at some of the asset managers on the buy side, you look at your average retail investor, they have not been
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participating as much. the thing is you haven't seen the risk as set side of the coin really sitting in cash. you've seen the fixed income side.set side of the coin really sitting in cash. you've seen the fixed income side. retail side of the house definitely does have cash sitting on the sidelines. the big picture lies in the fact that we look at inflation as kind of a carbon monoxide of investing. we think it will be eating away at client portfolios each day. so you need market exposure in being invest fed in order to do that point. equity fund flows have given the market a kick. some people on the buy side are playing catch up after coming out of january a little behind their benchmarks. but the bigger picture, i don't think the valuation argument is really fair. you've got an s&p that we expect will earn 108 bucks, trading somewhere around 13 times. multiple market expansion good for 15 times. but i think again looking at this market run we've had year to date, 10% is a lot in 2 1/2
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months. and that being said, to see a little bit of pull back, to see a little bit of a pause shouldn't come as too much of a surprise. we want to be buying on put back at wells fargo. >> you want to buy on the pull back, so you are expecting pull backs. and you think the retail investor is participating or do you expect that that will be sort of another ramp up for this market? >> i think there is still another ramp here to come because by and large we've been trying to climb the wall for the better part of 1 months and there will be issues. march 27th is a big issue for this market place. you still have issues obviously out of europe. no all clear sign out of asia. but the point being we don't think any one of these singular issues will kill the global growth story and i think that's the bigger picture that a retail investor needs to look at given the market environment and using some of that cash judiciously over the course of the next two and three months. >> we are seeing growth outside
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of the united states. people want to participate in the emerging markets still. jeff, is this a place where you would put money? >> it is a place that we have been putting money and i would say we've also globalized our bond portfolio. typical is highly correlated to corporate credit highly correlated to correlated to equities. so we've looked at globalizing our portfolios, trying to exploit opportunities across the globe and some includes emerging markets. so we're finding some value in those areas both on the equities side and on the debt side. >> did you agree, dani? >> to some degree, we would. emerging markets have not done as well as the u.s. market has done and the developed markets have done. but we do think that there a lot of room and no volume there either by the way. really sad volume in the international markets, as well. >> thanks, everybody. really appreciate your time tonight. by the way the market is up 50
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points. let's find out who won and who lost from better thrtha coombs. >> the bulls continue to win their way. fewer than 3 billion shares today for the dow, a fifth straight historic close. s&p less than 1% from its historic record high. but the dow transports also closing at a historic high. mid caps, as well, the breadth of the rally noted by a number of sectors also hitting all-time highs today. january financial the best performer in the s&p today hitting a 21 month high after positive mention in barons. citi at a two year high and wells fargo at a 4 1/2 year high. also in health care, j and j, mckesson, they lead the list of all-time highs help to go send the biotech and health care provider indexes to historic levels. there are signs investors are taking profit off the table.
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airlines moving lower. helped lift dow transports to the historic highs. telecom were the laggard, but at&t managed to give a lift to blackberry. the carrier announcing it will take pre-orders on the z-10 this week. blackberry seen its best gains since changing its name from r.i.m. a month ago. >> thank you so much. technology stocks meanwhile dividend plays? that's what's happening in the market. we'll have a report on dividend payers. and then a frenzy of activist investors on wall street pushing to split the roles of chairman and krchleco. coming up, i'll talk to a former ceo. and a new controversial book from sheryl sandberg asserting women hold themselves back in the work place. we'll talk to the female ceo of hsn for reaction.
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welcome back. when you think about dividend play, you don't usually think about technology stocks. but names and numbers on tech.
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>> that's right, the interest rates at record lows, investors have focusing on stocks that pay difference teviden dividends. technology may be at the bottom, but according to howard silver black, tech makes the largest contribution to total of any sector. and payments by tech firms of $44 billion up nearly 200% from 2007 compared to the broader s&p 500 which is up just 22%. in terms of tech names and how the largest, apple tops the list $9.9 billion in annual basis. followed by microsoft and intel. all these names along with qualcomm and oracle are still underperforming the s&p 500 year to date and are projected to grow earnings at 5% or more over the next five years. the street also watching the two big holdouts in tech to see if
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they jump on the dividend bandwagon. however, they say don't hold your breath. not expecting a dividend anytime soon. back to you. >> when most people invest in technology stock, they are usually hoping for big returns. consider when apple went public back in 1980, its ipo was priced at $22 a share. today during trading it hit a high of $437 and only recently started paying a dividend. so is it a sound investing strategy to buy technology stocks while eyeing the dividend? paul schatz doesn't think so. but robert says things have changed. paul, make the case. >> listen, we all invest in technology for obvious reasons. technology are on the cutting edge of the economy and they have usually astronomical growth rates. by the time they start paying divide dividends, they're more mature,
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many move from growth to value. and frankly, i don't think you're rewarded for the risk you take. just look at something like microsoft and intel. we heard how much they are he's paying in dividends. you go back to '08, they were obliterated during the bear market. 50% to 70%. so if they paid a 2% dividend, that's very little consolation when your principal is more than cut in half in a short period of time. >> right. so robert, if you invest in tech right now for dividends, are you expecting to lose money on the stock return? >> i think it's a unique situation today where technology when you look at it today compared to other sectors in the s&p that you might normally look at to pay dividends like let's say staples for example, this is a sector that's really pretty cheap. a lot of these big technology companies today are trading at single digit multiple s. so it's not like 2007. and when you look at pure fundamentals, balance sheets are
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pristine. free cash flow and not only supports the current dividend that they're paying, but also also continues to support an increase in dividends coming up here over the next few years. as an investor, it's just a different point this time. you used to think as bonds being the place to go for safety. and you thought of maybe staples being the place to go for dividends. you just have to think a little bit different and history rhymes when it doesn't repeat itself and we think if you're looking for safety in a market that's come pretty quick, that's a good place to get yield today. >> i guess one of the issues is that we have so much cash on balance sheet, technology included, and there's activist investors reemerging that want that cash to be put to work. doesn't it become a problem after a while if you're sitting on so much money in cash that investors will push for a dividend or some kind of shareholder friendly move? >> i think actually it's a different problem. if you're a technology company
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and you've been achieving these fantastic growth rates and all of a sudden you say i get all this cash and the best investment i can make is to pay out a dividend instead of invest in my own company? i scratch my head. i don't get it. i understand that people have gone from treasury bonds and cds to corporate bonds to high yield bonds and now they're into dividend plays. this will end horrifically for the individual investor. tech stocks are still aggressive. they're high beta if you want to use wall street jargon. they didn't belong in the hands of people used to buying old companies. it will end poorly. in a well balanced portfolio, could you carve some out for some tech stocks to pay high dividends? sure. but in the end when the next bear market comes to roost and i think it's sooner than later, forget about 2008. look what happened 2000 to '02. bear markets will devastate the tech stocks.
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>> you really put all these names in the same basket, though? apple went public at $22. goi google went public at $79. why would you differentiate technology being some different basket of companies? >> because they were amazing performers before they started paying -- look, started paying a dividend. apple look where the peak was. i still say that. if these companies are so wonderful, they should have a better use of the money than paying it back it shareholders. microsoft and intel and dell and cisco and oracle and all the others had amazing runs and then they started paying dividends. look where the peaks were. you can't tell me that it makes sense. >> what about that? >> maria, i think comparing today's valuations in technology to 2000 is really a preposterous correlation. these companies are nowhere near valued where they were in 2000. >> how about '07?
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>> can't continue to grow and pay a dividend, ibm flies in the face of that. they have continued to grow. and i think a lot of technology companies right now are starting to catch on to that model. look at cisco for example. this is a company that has $46 billion in cash, yielding about 2.6% right now. and john chambers in january announced that they will be moving more into the services sector. very similar to what ibm's done in the past. so to say it can't happen and hasn't worked isn't true. >> for every one ibm you can pull out, look at xerox and polaroid and atari. i mean, i can give you a xwr graveyard of tech stocks that didn't follow the model. >> what's wrong with tech then that they don't follow a regular growth in earnings model? what's the problem? >> i think they do -- the
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problem is once tech stocks begin to pay difference tends, the best years historically have been behind them. forget about valuations from '07 and 2000. just take a look at almost any 20 year period. >> what is your point? they're using that money for innovation? >> they become behemoths. just like general stock, it was the storied stock of the '90s. >> but that's not technology. >> no, but the same thing. when companies become so big and they become clumsy and they can't move quickly, they lose -- they're not nimble. it's the same thing. are you telling me microsoft and intel, that's where you think we should be on a go forward? there's hundreds of companies that are micro caps right now. >> timing is everything. where you buy is key. you have to look at today, where the market is today and where you're placing money today. and the valuations especially
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after the recent run up is just not expensive. i agree longer term some of these stories haven't been great. but you have to look at today. where would you rather buy, apple or cisco at 10, 11 times earnings or a general mills with the same yield valuations basically at 16 times earnings. i think you just have to look at today. >> we have to run, guys. really good discussion. thank you, gentlemen. now big banks are in the i've the activist investors. coming up, former ceo with his take on that and a lot more. and tomorrow my interview with bob iger. they tried to fail his roles. a lot to get into with disney boss tomorrow. ♪ ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements.
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quick market flash. >> that's right, take a look at shares of verifone. this is ticker pay. electronic payment systems. shares spiking after hours. up more than 8% on the announcement that the ceo is stepping down from his role of both ceo and chairman. he's been leading the company for 12 years. interim ceo is the current chairman stepping in to take over. and shares are spiking on the news about back to you. >> thank you so that. meanwhile activist investors on on a war path to break up the
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roles across corporate america. the sec telling the bank it has to vote on a shareholder proposal by ctw investment group calling for a split of the chairman and ceo role held by lloyd blankfein. to get reaction to all of this, former chairman and ceo of wells fargo. dick, what do you make of the investor activity? >> there is a position that could be stated that there is some advantages to separating it. but there should be a reason why you are doing that. for example, succession. i participated in three different successions and i recommended to the board and they agreed that we have a separation between the chairman and the new ceo so that the transition would go smoothly and the new ceo could get settled before the old ceo left.
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when we merged with wells fargo, in order to integrate the cultures, paul hazen remained as chairman for a up ke couple yea. it could also be separated if what the company is going through is such a major change that you really need two people to split some of the activities. but if you're separating it because you're concerned that the ceo doesn't have the proper talent or is not managing risk well, i don't understand that. should you get rid of the ceo, not try to overlay chairman because of some sort of deficiency. so there are times when it makes sense and there are times when it's a wish or hope that somehow things would improve if you had two people there instead of one. >> so in other words you do it
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for a good reason. you don't do it just to do it. do you think activist investors are getting out of control here particularly when it comes to leaders who have actually made their company stronger and more profitable? you look at a situation -- >> if there would have been a split, i remind you that enron and worldcom had split chairman and ceos. those can't turn out too well. >> you had both roles at we also. when you announced plans to retire, you stayed in the chairman position allowing john stump to step in. that's what you said, you basically did it for a reason is that key get his sea legs while you were still there in a position to help if need be. >> yes.
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for example, most new krechlt chlt os have been coo of the company. but they probably haven't run every one of the businesses in that company. and certainly not the staff departments about. so it gives them time to really get in and run the company from the inside and the old ceo can be available to do all the external activities. as it turned out in this situation, as you may recall, i was supposed to retire at the end of 2008 and then john and the board asked me to stay on for another year because we acquired wachovia. so yet another advantage of setting things up because john could spend all of his time in the integrate of wachovia, he had to travel to the east and i could help out with the existing business. in that case we needed two bodies because we were twice as big. so these were very good reasons to have a chairman and ceo separate. >> so having said that, how do you deal with activist investors who bring up things that they
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want changed? jack welch was on the show last week, obviously when he led ge, he faced activist shareholders. listen to his take. >> we had that problem for years. they would come after us what are you going to do with that cash. we're going to do a smart thing. trust us, be with us. theses guys are after a quick hit. i'd blow them up. >> what do you think about that? you have to listen to shareholders particularly somebody who owns a big stake in the company. with y but what if you don't agree with what they want you to do? >> i do agree many of these activists are short term shareholders. and it's been very clear with ge and wells fargo, we tell our shareholders we're in this for the long term. we'll make long term decisions.
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we're not going to do financial engineering. and, therefore, you have a conversation or you may not have a conversation depending on the activist, but you tell them why you believe that what they are doing if you do believe that is not right for the company or about if they have a suggestion that makes sense, do you it. and my point is i would say in my career we had many times we had differences with stock analysts of something that they wanted us to reduce costs and we thought we should be investing. that we would buy a troubled company that they didn't think we should buy. we did what we thought was right and i think the results proved that most of those decisions were good decisions. >> dick, are you expecting we'll hear a dividend increase, do you expect all the banks given that we know 17 out of the 1 passed the stress tests, are you expecting shareholder moves?
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>> i think the fed is going to approve most if not all of the capital requests for two reasons. remember, the investigation conditi stress conditions that they put out is the most severe of all of the previous stress tests that were done. and yet the economy is in much better shape today. yet all but one passed their capital -- from their capital standpoint well above the minimums. secreta secondly, their own internal models were actually showing capital was much higher than what the fed capital results were from the stress tests. and i can tell from you personal experience that i found major, major problems with the fed model. in 2009, the stress test was only for six months. we were supposed on to estimate in may what our revenues and so
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on would be into november before the fed said wells fargo revenue would decline by 30% in six months. mathematically impossible. the actual results were our revenue resulted in about 1.5% before our estimate and 33% above of the fed's model. when i asked to seat fed model, they wouldn't give to us. and i guess if i had a model like that, i wouldn't want to show it either. >> dick, always nice to have you on the promise program. thanks so much. back to courtney reagan we go. >> shares of yum spiking after hours. same store shares in dchina intern expected. yum brands first quarter comps down 20%, but february comps up 2%. much better than what the market had expected.
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back to you. up next, we're headed down to austin. not for the barbecue or blues, but for a business. the only south by southwest festival is under way. and take a look at this tropical escape. golden beaches, major advice tak vista. an escape from paying taxes on capital gains. we'll tell you where it is. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪
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dan can easily send money by email right from his citibank account. nice job ben. [ male announcer ] next up, the gutters. citibank popmoney. easier banking. standard at citibank. sheryl sandberg best known for her role as mark zuckerberg's second in command at facebook, before that she was a big deal at google and now a lot of attention for her new book. she's drawn both praise and criticism for some of her views. here is some of what she said on 60 minutes last night. >> they start leaning back. they say i'm busy, i want to have a child, i couldn't possibly take on anymore. or i'm still learning on my current job. i've never had a man say that stuff to me. >> you're suggesting women aren't ambitious. >> i'm not suggesting women aren't ambitious.
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but i am saying that the data is clear that when it comes to ambition to lead, to be the leader of whatever you're doing, men, boys outnumber girls and women. >> joining me now to offer some of her firsthand insight on this is mindy grossman, ceo of hsn inc.. generates more than $3 billion in revenue a year. plaind mindy, thanks for joining us. so what's your reaction to what we just heard? >> i think what we all have to recognize is what sheryl has done with her book is ignite conversation around a very important topic which is the inequity of women in the business world, period. and you may be pro, con, you may have a different point of view. she's one woman and we all have different points of views. but we have an issue and we clearly need action against that so the more conversation that we can have around this, the
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better. >> but do you agree? i mean, is this why women aren't further along in the ceo office? is that the reason? women don't have the will to lead? >> i do not agree that women don't have the will to lead. i do believe that women have to put themselves out there more, but that is not the only issue. i think boards and ceos have to hold themselves accountable to have more diversity in the workplace. it drives better results and is more dynamic. we're in a fast moving consumer driven technology world where women are driving a big part of the conversation and they need to be at the table. and it's not just diversity of gender. it's diversity of thought. 60% of my leadership team are women. 60% about of my directors and above. and i know that that conversation at the table is what has helped drive business results. >> another point that sheryl has made is that the woman's
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revolution is stalled. would you agree with that? i mean, i know 60% of your people are women and 60% of your leadership is women which is great. but she says the revolution has stalled. do you agree? >> i do agree that it is not moving nearly at the rate it needs to. but it starts at the top. so companies need to say you can't fill a position unless 50% of your candidate pool is diverse. you have to hold people accountable for the metrics around diversity in the company. you have for make sure the board is diverse and you have to put the ceos compensation and marry to where they running the most effective company. and if the numbers are clear that companies that are more diverse drive better business results, then they need to be held accountable. >> now, this is more than just the books. sheryl is starting a lean-in community. hsn is a launch partner. talk about the movement. >> i think what she's trying to create is women supporting other women and listening to them
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based on their experience and giving women tools. and i think as women, if we have a position of influence, we need to use that position to support other women and lend our voices. when i was the most senior woman at nike, i started their first women's leadership council. i talked about the importance of diversity. i spoke externally about that. i was involved in the nike foundation. we have to lend our voice and say, no, it's not okay and we have to be willing to help other women and support them. >> what about the local idea of lean in? lean in is also coming under fire, some people questioning whether the message is really relatable to all women. >> no one message is relatable to all women. sheryl is sheryl. i'm mindy. you know, i have a point of view based on my experience. i don't have the college degree. i started as the assistant and worked my way up. my experiences are going to give me a different conversation. and as women, what we can do is
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listen to all of them and have our own takeaway from all of that on what's relevant to us. it's not a right and it's the not a wrong. but it's about creatinging debate, it's about creating conversation and it's around creating action. >> all right, mindy, great to have you on the program. thanks so much. >> thank you for having me. >> ceo of hsn inc.. they say everything is bigger in texas, right? next we'll find out why all the big tech companies and venture capitalists are headed down to the lone star state. and john paulson might be hitting the road, too. he could avoid a massive tax bill at the same time. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ]
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80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. the annual south by southwest festival in austin is not just about music and film. technology heavy weights are there, as well. julia boorstin is live. what are the companies hoping to find? >> reporter: big brands are everywhere here and ask the yes why all the corporate names are flocking here to south by southwest, it's because this is where all the cool kids are. here is how one entrepreneur put it. >> you have this cross-pollination between digital and film and music, sort of multidid disciplinary creative arts, and so there is a cool energy to it. >> major advertisers are teerg win over the influencers and
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create buzz about their products. samsung delivers some fresh smartphone batteries. yahoo! launch alley showcases its flicker photo sharing service. microsoft is promoting its blind comparison to google for its bing search engine. handing out bracelets for access to swag and massage. and american express are here looking for new customers. >> i think south by southwest is the conference where additional social mobile and technologies are being showcased. this is where the future happens first. we need to be in the middle of it. that's where our customers are. >> even chevrolet is offering free rides in cars with a lounge to try to up its cool factor. and american airlines is partnering with at&t to host a travel hack competition for developers to develop a new
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travel app. for more, go to cnbc.com and my blog. back over to you. >> thank you so much. hedge fund heavy weight john paulson may be ditching park avenue for palm trees and new york's nasty winters aren't the only thing he will escape. robert frank with the details. >> he's been doing anxious real estate shopping in puerto rico. sources tell me he's looking at a few properties for himself or for investment. a spokesman telling us only, quote, while we have looked at reelg he real estate investments, we haven't made any yet. it has nice beaches and really nice tax laws. puerto rico's economic development chief telling me he's talking between 75 and 100 u.s. investors and companies to move there, around a dozen have already been approved. here is why. if you become a tax recent department of puerto rico, you pay no taxes on capital gains, dividends, interest income. and if you register your
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business there, you pay only 4% on business income. now, there are certain wrinkles and restrictions of course if you become a resident, you need to live there at least 183 days a year, but those tax breaks are guaranteed to stay in effect until at least 2035. for someone like john paulson who makes a lot of income from capital gains, the savings could be in the millions or even tens of millions per year. >> all right. thanks so much, robert frank. we will keep watching that one. really interesting development there for john paulson. so can the rally continue for stock prices? find out how to prepare your investments for tomorrow. today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site.
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now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. [ laughter ] ♪ [ female announcer ] each one of us is our own boss. ♪ and no matter where you are in life, ask your financial professional how lincoln financial can help you take charge of your future. ♪ can help you take charge of your future. ♪
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but i am your rmarket data. i know what you're looking for. i'm not chained to your desk anymore. i'm faster and smarter now. and so much less expensive. i am your market data. and if i do say so myself, i have never looked better. superderivatives introduces dgx. data done differently. welcome back. yet another record high for the dow as the momentum continued tomorrow? we have 30 seconds for each the the panel will tell us what else we should be prepared for. eric marshall, jennifer delaney and jimmy lee. good to see everybody. thanks for joining us. eric, kick us off. 30 seconds on the clock. what are you watching for tomorrow? >> we wouldn't get too caught up
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in the february treasury budget that will be out in the morning. any pull back in the market related to that we would view as an opportunity to buy stocks. as far as earnings, costco will be out in the morning. this is a seasonally a transition period for them, but we'll pay attention to what they have to say about the effects from payroll tax increases, as well as some of the recent weather patterns. bioscripts, which is a small-cap specialty pharmacy, is a stock we own action and then we'll pay attention to some of the leadership groups. >> all right. we will watch that, jennifer, what are you watching, and what should we be keeping an eye on. >> in the emerging markets trade today thea from both south africa and turkey, they have the two widest deficits in the emerging markets, so looking for any widening there that could put pressure on the currencies. 9 both had weak prince in december so, looking for moderate improvement.
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later in the week, we have four emerging market policymakers making rate decisions. any move there would be a surprise. >> we'll watch all of that. jimmy, over to you, 30 seconds on the clock. what do you want toe prepared for tomorrow? >> hi, maria, better than expected jobs report action so i'm optimistic. also, with the equity markets, if this happens, i would use it as a buys opportunity, and finally i'm watching the statements from the central bankers to gauge when the sentiment may change. possibly the higher interest rates, but overall a slowly improving economy. >> all right. we'll watch all that. thanks, everybody. we'll be watching this market continue to climb up 50 points today. see you soon. up next, my take on the controversy around the new book from facebook's sheryl sand berg, "women in the workplace."
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finally my observation on women and their so-called will to lead. sheryl, of course, has been very successful from a longtime leadership role to now second in command at facebook. she was able to break into a part of the business that was full of men and become a leader there. of course, she is the minority, with most companies today run by men, and women run holding a small numb gere. here's what she told "60 minutes" last night. >> the very blunt truth is men still run the world. >> what about the women's revolution? >> i think we're stalled, and i think we need to acknowledge we're stalled, so that we change it. i find is interesting and probably not a coincidence it has been technology and consumers products that boasted most wom i